| |
| |
| |
|
|
AN ACT
|
|
|
relating to service of process on condominium unit owners and |
|
|
condominium unit owners' associations in certain municipalities. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 82.002(c), Property Code, is amended to |
|
|
read as follows: |
|
|
(c) This section and the following sections apply to a |
|
|
condominium in this state for which the declaration was recorded |
|
|
before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053, |
|
|
82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113, |
|
|
82.114, 82.116, 82.118, 82.157, and 82.161. The definitions |
|
|
prescribed by Section 82.003 apply to a condominium in this state |
|
|
for which the declaration was recorded before January 1, 1994, to |
|
|
the extent the definitions do not conflict with the declaration. |
|
|
The sections listed in this subsection apply only with respect to |
|
|
events and circumstances occurring on or after January 1, 1994, and |
|
|
do not invalidate existing provisions of the declaration, bylaws, |
|
|
or plats or plans of a condominium for which the declaration was |
|
|
recorded before January 1, 1994. |
|
|
SECTION 2. Subchapter C, Chapter 82, Property Code, is |
|
|
amended by adding Section 82.118 to read as follows: |
|
|
Sec. 82.118. SERVICE OF PROCESS ON UNIT OWNERS. (a) A unit |
|
|
owner of a condominium located wholly or partly in a municipality |
|
|
with a population of more than 1.9 million may be served with |
|
|
process by the municipality or the municipality's agent for a |
|
|
judicial or administrative proceeding initiated by the |
|
|
municipality and directly related to the unit owner's property |
|
|
interest in the condominium by serving the unit owner at the unit |
|
|
owner's last known address, according to the records of the |
|
|
appraisal district in which the condominium is located, by any |
|
|
means permitted by Rule 21a, Texas Rules of Civil Procedure. |
|
|
(b) Notwithstanding Subsection (a), a unit owner may not |
|
|
offer proof in the judicial or administrative proceeding, or in a |
|
|
subsequent related proceeding, that otherwise proper service by |
|
|
mail of the notice was not received not later than three days after |
|
|
the date the notice was deposited in a post office or official |
|
|
depository under the care and custody of the United States Postal |
|
|
Service. |
|
|
SECTION 3. Section 82.153(a), Property Code, is amended to |
|
|
read as follows: |
|
|
(a) A condominium information statement must contain or |
|
|
accurately disclose: |
|
|
(1) the name and principal address of the declarant |
|
|
and of the condominium; |
|
|
(2) a general description of the condominium that |
|
|
includes the types of units and the maximum number of units; |
|
|
(3) the minimum and maximum number of additional |
|
|
units, if any, that may be included in the condominium; |
|
|
(4) a brief narrative description of any development |
|
|
rights reserved by a declarant and of any conditions relating to or |
|
|
limitations upon the exercise of development rights; |
|
|
(5) copies of the declaration, articles of |
|
|
incorporation of the association, the bylaws, any rules of the |
|
|
association, and amendments to any of them, and copies of leases and |
|
|
contracts, other than loan documents, that are required by the |
|
|
declarant to be signed by purchasers at closing; |
|
|
(6) a projected or pro forma budget for the |
|
|
association that complies with Subsection (b) for the first fiscal |
|
|
year of the association following the date of the first conveyance |
|
|
to a purchaser, identification of the person who prepared the |
|
|
budget, and a statement of the budget's assumptions concerning |
|
|
occupancy and inflation factors; |
|
|
(7) a general description of each lien, lease, or |
|
|
encumbrance on or affecting the title to the condominium after |
|
|
conveyance by the declarant; |
|
|
(8) a copy of each written warranty provided by the |
|
|
declarant; |
|
|
(9) a description of any unsatisfied judgments against |
|
|
the association and any pending suits to which the association is a |
|
|
party or which are material to the land title and construction of |
|
|
the condominium of which a declarant has actual knowledge; |
|
|
(10) a general description of the insurance coverage |
|
|
provided for the benefit of unit owners; [and] |
|
|
(11) current or expected fees or charges to be paid by |
|
|
unit owners for the use of the common elements and other facilities |
|
|
related to the condominium; and |
|
|
(12) for a condominium located wholly or partly in a |
|
|
municipality with a population of more than 1.9 million a statement |
|
|
that a unit owner: |
|
|
(A) as an alternative to personal service, may be |
|
|
served with process by the municipality or the municipality's agent |
|
|
for a judicial or administrative proceeding initiated by the |
|
|
municipality and directly related to the unit owner's property |
|
|
interest in the condominium by serving the unit owner at the unit |
|
|
owner's last known address, according to the records of the |
|
|
appraisal district in which the condominium is located, by any |
|
|
means permitted by Rule 21a, Texas Rules of Civil Procedure; |
|
|
(B) shall promptly notify the appraisal district |
|
|
of a change in the unit owner's mailing address; and |
|
|
(C) may not offer proof in the judicial or |
|
|
administrative proceeding, or in a subsequent related proceeding, |
|
|
that otherwise proper service by mail of the notice was not received |
|
|
not later than three days after the date the notice was deposited in |
|
|
a post office or official depository under the care and custody of |
|
|
the United States Postal Service. |
|
|
SECTION 4. Section 54.035, Local Government Code, is |
|
|
amended by amending Subsections (a), (d), (e), and (f) and adding |
|
|
Subsections (a-1) and (a-2) to read as follows: |
|
|
(a) Except as provided by Subsections (a-1) and (a-2), |
|
|
notice [Notice] of all proceedings before the commission panels |
|
|
must be given: |
|
|
(1) by personal delivery, by certified mail with |
|
|
return receipt requested, or by delivery by the United States |
|
|
Postal Service using signature confirmation service, to the record |
|
|
owners of the affected property, and each holder of a recorded lien |
|
|
against the affected property, as shown by the records in the office |
|
|
of the county clerk of the county in which the affected property is |
|
|
located if the address of the lienholder can be ascertained from the |
|
|
deed of trust establishing the lien or [and/or] other applicable |
|
|
instruments on file in the office of the county clerk; and |
|
|
(2) to all unknown owners, by posting a copy of the |
|
|
notice on the front door of each improvement situated on the |
|
|
affected property or as close to the front door as practicable. |
|
|
(a-1) Notice to a condominium association of a proceeding |
|
|
before a commission panel relating to a condominium, as defined by |
|
|
Section 81.002 or 82.003, Property Code, located wholly or partly |
|
|
in a municipality with a population of more than 1.9 million must be |
|
|
served by personal service, by certified mail, return receipt |
|
|
requested, or by the United States Postal Service using signature |
|
|
confirmation service, to the registered agent of the unit owners' |
|
|
association. |
|
|
(a-2) Notice to an owner of a unit of a condominium, as |
|
|
defined by Section 81.002 or 82.003, Property Code, located wholly |
|
|
or partly in a municipality with a population of more than 1.9 |
|
|
million must be given in accordance with Section 82.118, Property |
|
|
Code. |
|
|
(d) A municipality must exercise due diligence to determine |
|
|
the identity and address of a property owner, [or] lienholder, or |
|
|
registered agent to whom the municipality is required to give |
|
|
notice. |
|
|
(e) A municipality exercises due diligence in determining |
|
|
the identity and address of a property owner, [or] lienholder, or |
|
|
registered agent when it follows the procedures for service under |
|
|
Section 82.118, Property Code, or searches the following records: |
|
|
(1) county real property records of the county in |
|
|
which the property is located; |
|
|
(2) appraisal district records of the appraisal |
|
|
district in which the property is located; |
|
|
(3) records of the secretary of state, if the property |
|
|
owner, [or] lienholder, or registered agent is a corporation, |
|
|
partnership, or other business association; |
|
|
(4) assumed name records of the county in which the |
|
|
property is located; |
|
|
(5) tax records of the municipality; and |
|
|
(6) utility records of the municipality. |
|
|
(f) When a municipality mails a notice in accordance with |
|
|
this section to a property owner, [or] lienholder, or registered |
|
|
agent and the United States Postal Service returns the notice as |
|
|
"refused" or "unclaimed," the validity of the notice is not |
|
|
affected, and the notice is considered delivered. |
|
|
SECTION 5. Section 214.001, Local Government Code, is |
|
|
amended by amending Subsections (b) and (r) and adding Subsection |
|
|
(b-1) to read as follows: |
|
|
(b) The ordinance must: |
|
|
(1) establish minimum standards for the continued use |
|
|
and occupancy of all buildings regardless of the date of their |
|
|
construction; |
|
|
(2) provide for giving proper notice, subject to |
|
|
Subsection (b-1), to the owner of a building; and |
|
|
(3) provide for a public hearing to determine whether |
|
|
a building complies with the standards set out in the ordinance. |
|
|
(b-1) For a condominium, as defined by Section 81.002 or |
|
|
82.003, Property Code, located wholly or partly in a municipality |
|
|
with a population of more than 1.9 million, notice to a unit owner |
|
|
in accordance with Section 82.118, Property Code, and notice to the |
|
|
registered agent for the unit owners' association in the manner |
|
|
provided for service of process to a condominium association under |
|
|
Section 54.035(a-1) satisfy the notice requirements under this |
|
|
section. |
|
|
(r) When a municipality mails a notice in accordance with |
|
|
this section to a property owner, lienholder, [or] mortgagee, or |
|
|
registered agent and the United States Postal Service returns the |
|
|
notice as "refused" or "unclaimed," the validity of the notice is |
|
|
not affected, and the notice is considered delivered. |
|
|
SECTION 6. This Act takes effect September 1, 2009. |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
| |
|
|
I certify that H.B. No. 3128 was passed by the House on May 6, |
|
|
2009, by the following vote: Yeas 144, Nays 2, 2 present, not |
|
|
voting. |
|
|
|
|
|
______________________________ |
|
|
Chief Clerk of the House |
| |
| |
|
|
I certify that H.B. No. 3128 was passed by the Senate on May |
|
|
27, 2009, by the following vote: Yeas 31, Nays 0. |
|
|
|
|
|
______________________________ |
|
|
Secretary of the Senate |
|
|
APPROVED: _____________________ |
|
|
Date |
|
|
|
|
|
_____________________ |
|
|
Governor |